New Gurnee budget still includes rebates, visitors bureau donation

Gurnee village board members tonight will take a final look at the proposed $47 million budget before it goes up for a vote.

Board members will gather at 6:30 p.m. for the budget's last review session, then vote on the document later in a regular board meeting. Residents can comment after the regular meeting starts at 7:30 p.m. at village hall, 325 N. O'Plaine Road.

Gurnee's new budget year starts May 1. Some of the village's proposed spending in 2010-11 includes:

• Contributing $130,000 to the Lake County Convention and Visitors Bureau, a $35,000 reduction from last year's budgeted amount.

• Rebating about $1 million to Gurnee Mills as part of the village's long-term deal with the mall. That amount would be below last year's projected $1.17 million.

• Shipping $462,000 to KeyLime Cove Water Resort, an increase of $68,000. Gurnee levies 7 percent hotel tax on KeyLime. Then, under a deal approved by the village board in 2004, KeyLime gets to keep 3.5 percent, or half, of the tax cash for up to 20 years or until it makes $22 million.

• Dedicating $3.1 million for work on neighborhood streets, sidewalks, pedestrian trails and lighting.

Village officials said annual rebates to two automobile dealerships will end this year.

Trustees in March voted 4-2 in favor of hiking the tax on wireless and landline telephones from 1 to 6 percent to raise an extra $650,000 annually.

Officials said the increase recommended in the tentative budget was necessary by March 19, otherwise the additional money wouldn't arrive until next year. Proponents said the phone tax was necessary to help plug a projected $1.1 million general fund deficit.

Gurnee's sales tax has dipped by nearly $2 million over the past two years. Mayor Kristina Kovarik said a move to reduce village services would have been likely if the phone tax wasn't boosted.